FIRST BUSEY CORP NV

Our effective income tax rates of 24.8% and 26.2% for the three and nine months ended September 30, 2024, respectively, were lower than the combined federal and state statutory rate of approximately 28.0% due to tax exempt interest income, such as municipal bond interest and bank owned life insurance income.

Our effective tax rates increased in 2024 due to the adoption of ASU 2023-02 in January 2024. In addition, our effective income tax rate for the nine months ended September 30, 2024, includes an estimated one-time deferred tax valuation adjustment of $1.4 million resulting from a change to our Illinois apportionment rate due to recently enacted regulations. These new regulations are expected to lower our ongoing tax obligation in future periods, but created a negative adjustment to the carrying value of our deferred tax assets in the second quarter of 2024. The table below presents our effective income tax rates and effective income tax rates excluding the one-time deferred tax valuation adjustment(dollars in thousands):

2 The efficiency ratio and adjusted efficiency ratio are non-GAAP financial measures. For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “Item 2. Management’s Discussion and Analysis—Non-GAAP Financial Information” included in this Quarterly Report.

We continue to monitor evolving federal and state tax legislation and its potential impact on operations on an ongoing basis. As of September 30, 2024, Busey Bank is under examination by the Florida Department of Revenue for its 2020 to 2022 corporate income tax filings.